Good day ladies and gentlemen, and welcome to the first quarter 2010 Resource Capital Corp. earnings conference call. My name is Josh, and I’ll be your coordinator for today. At this time all participants are in a listen-only mode. We will be facilitating a question-and-answer session towards the end of this conference. (Operator Instructions) I’d now like to turn the presentation over to our host for today’s call, the President and CEO of Resource Capital Corp., Jonathan Cohen; you may proceed Sir

Thank you for joining the Resource Capital Corp. conference call for the first quarter 2010. I am Jonathan Cohen, President and CEO of Resource Capital Corp. Before I begin, I would like to ask Purvi Kamdar, our Director of Investor Relations, to read the Safe Harbor statement.

Thank you. When used in this conference call, the words believe, anticipate, expect, and similar expressions are intended to identify forward-looking statements. Although the company believes that these forward-looking statements are based on such reasonable assumptions, such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from these contained in the forward-looking statements. These risks and uncertainties are discussed in the company’s reports filed with the SEC, including its reports on Forms 8-K, 10-Q and 10-K, and in particular, Item 1, on the Form 10-K reported under the title Risk Factors. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to update any of these forward-looking statements. With that, I will turn it back to Jonathan.

Thank you Purvi. First a few highlights. Net operating income for the three months ended March 31, 2010 was $10 million or $0.26 per share diluted, as compared to $10.2 million or $0.42 per share diluted for the three months ended March 31, 2009. We announced a dividend of $0.25 per common share for the quarter ended March 31, 2010, or $10.1 million in aggregate paid on April 27, 2010 to stockholders of record as of March 31, 2010. Our economic book value, a non-GAAP measure, was $8.30 per share as of March 31, 2010, and our GAAP book value was $5.98 per common share. With those highlights out of the way I will now introduce my colleagues. With me today are David Bloom, Senior Vice President in charge of Real Estate Lending; David Bryant, our Chief Financial Officer; as well as Purvi Kamdar, our Director of Investor Relations. The first quarter of 2010 was marked by our continued buildup of cash; over $109 million as of March 31, 2010. Our continued deleveraging so after adjusting for our cash balances our net debt to equity ratio is 4.7 times, and our real estate portfolio is under two times leveraged, and we continue to build in a significant pipeline of potential new investments. Including $26.6 million of debt we purchased in early April, we have now bought approximately $107.4 million of our debt. While we continue to see debt purchase opportunities and believe we will buy another $30 million to $50 million of debt over the next few months, we are also looking forward to investing some of the $109 million in cash that we’ve accumulate. In fact, our pipeline on the corporate side has grown significantly, and we believe we can add between $0.12 and $0.20 of net operating income…

Thank you Jonathan. Resource Capital Corp.’s commercial mortgage portfolio as a current committed balance was approximately $760 million across the granular pool for 43 separate loans. Our portfolio of commercial mortgage positions is in components as follows: 63% whole loans, 26% mezzanine loans, and 11% B-notes. The collateral base underlying the portfolio continued to be spread across the major asset categories in geographically diverse markets, with a portfolio breakdown of 25% multi-family, 24% office, 32% hotel, 12% retail, and 7% other, such as flex office, industrial or self-storage. We have had one $7 million multi-family loan comprised of three buildings that was involved in a contested foreclosure process. However, in recent weeks we have reached a settlement with the borrower that will give us title to two buildings, and payoff the third for $2.5 million. The settlement agreement has been fully executed and is now awaiting court approval, which should be forthcoming shortly. Even a distressed valuation of the assets exceeded our outstanding loan balance, so we remain confident about the ultimate recovery of principle on this loan. In addition to the one to five multi-family loan that has now been settled, we continue to have a $10.5 million mezzanine loan in default, that has not paid principal any interest since January. There have been extensive settlement negotiations with the borrower, other mezzanine participants, and the special servicer, and there is a concessional settlement agreement that has been preliminarily agreed to by the parties. The cash flow from the properties [expecting] the loan covers debt service, but through a technicality, cash flow is been trapped at the senior lender. As part of the settlement, the borrower will be committing fresh equity to the deal, and our position will be brought current. In addition, current appraisals for the properties securing the…

Thank you Dave. I will now give you some statistics on our corporate bank loan portfolio. As I stated earlier, we have syndicated bank loans with an approximate value of $870 million, encompassing over 30 industries. Our top industries are healthcare 12.5%, diversified 8.9%, broadcasting and entertainment 8.9%, chemicals 5.9%, and printing and publishing 5%. At the end of December our average loan asset yield 2.7% over LIBOR and our liabilities are costing us 47 basis points over LIBOR. Now I will ask Dave Bryant, our Chief Financial Officer to walk us through our financials.

Thank you Jonathan. Our estimated REIT taxable income for the first quarter 2010 was $9.3 million or $0.24 per common share. Our board declared a cash dividend for the first quarter of $0.25 per common share. At March 31, 2010, RCC’s investment portfolio was financed with approximately $1.5 billion of total indebtedness that included $1.47 billion of CDO senior notes, $51.5 million sourced from our unsecured junior subordinated debentures related to our two TRUPs issuances in 2006. We ended the period with $239.6 million in book equity. RCCs borrowings of $1.5 billion had a weighted average interest rate of 1.02% at March 31, a reflection of continuing very low LIBOR. Consistent with our stated philosophy of maximizing match funding, our investment portfolio is now completely match funded by long-term borrowings, thus we have no short-term debt. Of note, we continue to pass all of the critical interest coverage and over-collateralization tests in our two real estate CDOs and three bank loan CLOs. Each of the structures continue to perform and generate stable cash flow to RCC year-to-date in 2010. The real estate CDOs produced over $7 million, and bank loan CLOs generated over $5.2 million of cash flow in the first quarter of 2010 respectively to the REIT. Of note, as of April 30th we have an access of $90 million in reinvestable cash comprised of approximately $40 million, and over $50 million in our bank loan and real estate deals respectively. This cash is available for reinvestment in the CLOs and CDOs to build collateral and strengthen our positions in each structure. For example, during the quarter ended March 31, we brought investment grade CMBS of $7.7 million, applied for a weighted average price of $64.27. The resulting discount of $2.8 million improved the collateralization in our real estate…

Thanks Dave. Again, as I said last quarter and the quarters before, management reiterates our $1 dividend guidance and believe that we can start from here to grow book value with debt buybacks and other means. Our liquidity has increased and we will continue to build cash and position ourselves effectively, although we are starting to invest and put that cash to work to add to the bottom line. Thanks for participating in our call, and now I’ll open the call for any questions.

(Operator Instructions) Your first question comes from Steve Delaney - JMP Securities. Steve Delaney – JMP Securities: I was little unclear. Dave was good enough to address the two problem commercial real estate loans, the $7 million multi-family, and the $10.5 million. So I guess Jon I was unclear given the resolutions that were described there; can you help me understand that $15 million provision in the quarter and exactly what loan that provision was made for, because it sounded like other than $1 million that went to general…

Yes, sorry about that. The two loans that Dave described, where there was the issue we are expecting a full payback and are about to finalize agreements on those. So those are sort of by next quarter hopefully in the good bucket, and not in the bad bucket. They are broken with that bucket for a quarter or two quarters or three quarters. The new loan which we basically had determined that we were going to get out of, really is a loan in California and that’s the bulk of this entirety of the reserve that we took, and it had to do with a very complicated zoning issue with a short term stay and long term stay as to in California, so that’s a separate loan. But I just want to make the point; it’s a very singular event that has really nothing to do unfortunately with the credit crises or like with the underwriting or the zoning change by the City of Los Angeles on zoning change, but zoning confusion I would say among California, LA and others that just made it untenable for us to spend the time to work through that loan. Steve Delaney – JMP Securities: Okay. So your $14 million you would say, pretty much it fully covers your exposure there. You are just kind of done with that one?

Exactly. Steve Delaney – JMP Securities: Okay, I mean looking forward to the opportunities, which I think now that you’ve clearly survived and taken advantage of the debt opportunities, which is kind of exciting to be I’m sure for all of you with your platform to be back, to doing the business you were created to do. Can you talk a little more specifically about the types of new loans that we likely to see over the next couple of quarters; would these be more mezz loans?

No, these would be whole loans; on a traditional business whole loans going up to 75% probably as where we were before to where we are now. We are negotiating certain lines of credit that we’ll enter into, but primarily we think in some cases we’ll be selling the first to CMBS and in some cases retain them as, but we will be originating all of those loans, and having significant control over the properties. These will be kind of anywhere from 8% to 10% unlevered with some sort of participation. Steve Delaney – JMP Securities: And you think some of them might confirm to conduit guidelines.

Yes, we’ll be working to confirm at least while we underwrite it, the ability to sell off an AP as to conduit. Steve Delaney – JMP Securities: So 75%, you might keep 15%, 20% in a B-note?

Yes, something like that, although it’s still very fluid. The time in which they reopen the CMBS, they need people on the ground, they need loans and diversities, and so it’s an excellent opportunity for us to retain a certain part of it as a gain, and also hold onto the risk that we like. Steve Delaney – JMP Securities: And that little bit of leverage to kind of get your, to boost you at times, you’ve mentioned bank lines of credit, so you’ll try to work up some kind of a term line with the bank for that portfolio.

Yes.

(Operator Instructions) And at this time we are showing no further questions available. Jonathan Cohen, you may proceed.

Well, thank you very much. We look forward to speaking with you next quarter. Thank you.

Thank you for your participation in today’s conference. This concludes your presentation. You may now disconnect. Have a great day.